ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
43. Statement terms and conditions to be furnished to prospective client
Edition: 2022-12-31 · In force
43. Statement terms and conditions to be furnished to prospective client
(1)Every commodity broker shall furnish each prospective client prior to the opening of an account with a written statement in a form approved by the Authority which will—(a)explain the nature of, and risks inherent in trading in contracts and obligations assumed by the client upon entering a contract;(b)advise the client to request and study the terms and conditions of the contract;(c)set out the terms and conditions of any relevant contracts;(d)furnish details concerning commissions and other charges levied by the commodity broker and the commodity exchange.(2)Every commodity broker shall upon request by a prospective client avail copies of all current terms and conditions of any spot commodities contract.(3)Where there is any unexpired or unexercised open spot commodity contract outstanding in a client's account, the relevant commodity broker for that specific transaction shall promptly deliver to such a client, a written monthly statement, setting forth—(a)the opening cash balance for the month in the client's account;(b)all deposits, credits, withdrawals and debits to the client's account;(c)the cash balance in the client's account;(d)each unexpired and unexercised spot commodity contract;(e)the agreed price of each unexpired or unexercised spot commodity contract;(f)each open spot commodity contract; and(g)the price at which each open spot commodity contract was entered into.